There’s more than one way to mix a drink, and in Texas, there’s more than one way to tax a mixed drink. The Lone Star State imposes both a mixed beverage gross receipts tax and, since January 1, 2014, a mixed beverage sales tax.
An 8.25% mixed beverage sales tax is imposed on:
- Each mixed beverage (distilled spirits, beer, ale and wine) sold, prepared or served by a mixed beverage permittee in Texas.
- Each nonalcoholic beverage.
- Ice sold, prepared or served to be mixed with an alcoholic beverage and consumed on the premises of the mixed beverage permittee.
Remember, the sales tax on mixed beverages is in addition to the mixed beverage gross receipts tax.
Taxpayers are permitted to “pass the mixed beverage sales tax on to the customer” in one of two ways:
- Add a line item for the mixed beverage sales tax on the customer’s bill; or
- Include the mixed beverage sales tax in the sales price.
Taxpayer records must accurately show how the sales tax is passed on to the customer. In addition, the Texas Comptroller reminds that mixed beverage sales tax “must be deducted from the amount received” before calculating the mixed beverage gross receipts tax.
Filing
The mixed beverage sales tax is due on the 20th day of the month following the reporting period. Reporting periods vary depending on the amount owed: monthly filing is required for taxpayers owing $500 or more each month (or $1,500 or more each quarter); quarterly filing is required for taxpayers owing less than $500 each month (or $1,500 each quarter).
Additional filing requirements are outlined on the Texas Comptroller’s Mixed Beverage Sales Tax web page.
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